Kraft follows Smucker, cuts Maxwell House coffee prices

February 21, 2013|Reuters

Jars of Kraft Food Co. Maxwell House instant coffee sit on display in a supermarket in San Francisco, California, U.S., on Tuesday, Nov. 1, 2011. Kraft Foods Group Inc said on Thursday that it lowered the price on its flagship coffee brand Maxwell House and some other brews, following a similar move by the maker of Folgers. (David Paul Morris / Bloomberg)

Major U.S. roaster Kraft Foods Group Inc said on Thursday that it lowered the price on its flagship coffee brand Maxwell House and some other brews by 5 percent to 6 percent, following a similar move by the maker of Folgers.

"As a result of sustained declines in the green coffee market, Kraft Foods is announcing a price decrease on select ground and instant coffees," Kraft spokesman Russ Dyer said in an email.

The price decline is effective immediately and affects only U.S. coffee, Dyer said.

J.M. Smucker, the maker of well-known Folgers coffee, cut its U.S. list retail prices by approximately 6 percent on Tuesday, when the company cited sustained declines in green coffee costs.

Kraft reduced its Maxwell House and Yuban roast and ground coffees by approximately 6 percent, and its Instant Maxwell House and soluble Sanka decaffeinated coffees by roughly 5 percent.

Gevalia, Maxwell House International, Tassimo, and Gevalia and Maxwell House Single Serve Cup brands are not included in the price change, Dyer said.

Both Smucker and Kraft last lowered their coffee prices by approximately 6 percent each time in May 2012 and August 2011.